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CONFIDENTIAL
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K6/304/1
WASHINGTON TELEGRAM NO. 44 SAVING TO FOREIGN ANL COMMONWEALTH
OFFICE They do not advocate an increase in the quantity of forces provided by members of the Alliance but in their quality. If a real effort is seen to be made by European countries the United States would find it easier to maintain their own contribution. The U.S. have no present intention of reducing their forces and it is denied that increased effort by European menbers of NATO would be likely to lead to such a reduction.
8.
Trade
During his talks, the President expressed concern at the economic conflicts between the United States and Europe and is anxious to see them resolved by cooperation. He drew attention to the protectionist pressures which were building up in the United States and pointed out that there were signs of similar pressures in the EEC which are adversely affecting United States interest. The President said he was determined to resist these pressures and he hoped to have support from European countries. One neasure on which he would like their cooperation was the voluntary limitation of textile exports to the United State. EEC Commissioner Deniau is to visit Washington soon and the U.S. Commercial Secretary, Mr. Stans, will shortly be going to Europe.
9. The Vatican
No decision has yet been taken to establish diplomatic relations with the Vatican. All that can be said at the moment is that the question is being considered.
10.
Berlin
The President hopes that some way may be found of reaching an understanding with the Russians with a view to avoiding continued tension over Berlin.
MR. J. FREEMAN
FCO DISTRIBUTION N.A.C.D.
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